Azerbaijan Airlines announces about establishing low-budget air transport line and reducing air ticket prices

July 22 2015, Baku - Azerbaijan Airlines (AZAL) has announced about establishing its own low-budget passenger transportation line (low-cost directions), as well as introducing new set of seats in aircrafts at low tariffs in all existing flights of the airline.

The measures have been taken in accordance with the instructions given by Azerbaijan’s President Ilham Aliyev to decrease the prices for air tickets during the meeting of the Cabinet of Ministers on the results of the country’s socio-economic development in the first half of 2015 and the objectives for the future.

At the joint board meeting of Azerbaijan Airlines and State Civil Aviation Administration held July 16, Chairman of the Board, Jahangir Asgarov gave instructions to deeply analyze the tariffs of each airline, to find ways for reducing the ticket prices, to develop new mechanisms to regulate the terms of applying benefits and tariffs.

Proposals on reducing the prices were put forward during the closed meeting of the board of Azerbaijan Airlines July 21. As a result of the reports, it was decided to take specific measures in this regard.

In particular, Azerbaijan Airlines will establish its own low-budget passenger transportation line (low-cost directions) on the following routes:

- Baku-Antalya-Baku - 3 times a week, starting from August 2015;

- Baku-Istanbul-Baku - one flight every day, starting from September 2015;

- Baku-Moscow-Baku - 2 flights every day, from October 2015;

- Baku-Dubai-Baku - one flight every day, from October 2015.

Different dates for starting the new flights are due to procedural issues, such as concluding agreements with the airports for the service, as well as receiving slots (permission) at foreign airports.

Business model of air transportation which is characteristic of low-cost airlines will be used on these directions.

The flights will be operated with Embraer aircrafts. Final sale price of tickets of the low-budget air transportation line in these directions will not exceed 99 euros in one way.

In addition, it was decided to introduce a new tariff policy aimed at reducing current prices on all flights of Azerbaijan Airlines. This tariff policy will not apply to new low-cost directions.

So, from August 1, 2015, Azerbaijan Airlines will apply 20-percent discount to the minimum existing tariffs of economy class. The number of tickets sold at this tariff, will make 30 percent of seats. Meanwhile, all the services of economy class will be preserved for passengers.